CPE Inc. (Parent Company Only) Financial Information

12 Months Ended

Dec. 31, 2012

CPE Inc. (Parent Company Only) Financial Information

CPE Inc. (Parent Company Only) Financial Information

21. CPE Inc. (Parent Company Only) Financial Information

        Due to restrictions on CPE Resources's ability to pay dividends or transfer assets to CPE Inc. imposed by its debt covenants, the following parent company only condensed financial information is presented which reflects the financial condition, results of operations and cash flows of CPE Inc. The information has been prepared using the equity method of consolidation under U.S. GAAP.

        The results of operations and cash flows are for the years ended December 31, (in thousands):

Condensed Statements of Operations

	2012			2011			2010
Management fee	$	8,076		$	7,254		$	9,469
Costs and expenses
General and administrative expenses		8,076			7,254			9,517
Total costs and expenses		8,076			7,254			9,517
Income (Loss) before equity in earnings of consolidated subsidiaries and income taxes		—			—			(48	)
Equity in earnings of CPE Resources		155,609			201,221			86,237
Interest expense		(312	)		(104	)		(21	)
Change in tax agreement liability		29,000			(19,854	)		(19,669	)
Income tax (expense) benefit		(10,578	)		8,534			(32,762	)
Net income	$	173,720		$	189,797		$	33,737

Condensed Balance Sheets

	December 31,
	2012		2011
ASSETS
Current assets
Deferred income taxes		7,015		6,881
Due from related party		12,554		27,892
Other assets		289		409
Total current assets		19,858		35,182
Deferred income taxes		34,939		54,548
Other assets		48		48
Investment in CPE Resources		999,190		845,428
Total assets	$	1,054,035	$	935,206
LIABILITIES and STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	18	$	50
Current portion of tax agreement liability		19,485		19,113
Accrued expenses		6,457		14,131
Total current liabilities		25,960		33,294
Tax agreement liability, net of current portion		97,053		151,523
Total liabilities		123,013		184,817
Total stockholders' equity		931,022		750,389
Total liabilities and stockholders' equity	$	1,054,035	$	935,206

Condensed Statements of Cash Flows

	Year Ended December 31,
	2012			2011			2010
Operating activities
Net income (loss)	$	173,720		$	189,797		$	33,737
Adjustments to reconcile net income (loss) to net cash used in operating activities		(173,720	)		(189,798	)		(33,736	)
Net cash used in operating activities		—			(1	)		1
Investing activities
Net cash provided by investing activities		—			—			—
Financing activities
Net cash provided by financing activities		—			—			—
Increase (decrease) in cash and cash equivalents		—			(1	)		1
Cash and cash equivalents at beginning of period		—			1			—
Cash and cash equivalents at end of period	$	—		$	—		$	1